Student Loan Debt Relief in Canada
Your Education Should Uplift You — Not Weigh You Down.
If student loan payments are keeping you up at night, you’re not alone. More Canadians than ever are carrying unmanageable student debt, with the average graduate leaving school nearly $30,000 in the red. At Spergel, we believe that your education should open doors — not close them. That’s why we’re here to offer judgment-free guidance and real, honest solutions for student debt relief in Canada.
How Do I Get Debt Help for My Student Loan?
Most often, debt forgiveness is achieved through either filing a consumer proposal or bankruptcy, but this must take into consideration the ‘Seven Year Rule’, which we will discuss below.
There are a few variables that will help determine how you can gain student loan debt relief. These include:
- How old your student loan debt is
- When you finished studying
- What you are able to afford to pay off
- Whether or not your student loan debt was private or government-funded
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When you call, you will be connected with one of our Licensed Insolvency Trustees (LITs) during our regular business hours.
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Saturday 9am – 4pm EST
Sunday 10am – 5pm EST
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Click the button below to reach or use our email address:
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How Much Could You Save?
Use our debt calculator to see how debt solutions like a consumer proposal could lower your payments.
What Is the ‘Seven-Year Rule’?
The Seven-Year Rule is a mandatory 7-year waiting period after stopping or graduating from a program, before any student loan debts can receive debt help.
Simply put: if your government student loans are more than seven years old, they may be eligible for full debt forgiveness under Canadian law. That’s because of the “Seven Year Rule” — part of the Bankruptcy and Insolvency Act — which allows you to discharge government student loans through a consumer proposal or personal bankruptcy after seven years have passed since you were last a full- or part-time student, whether this is the date of your graduation or your last exam. If you have been a student in the last seven years, you will not automatically gain debt relief from a consumer proposal or bankruptcy
Note: If you returned to school after graduation, your seven years may reset.
Do All Student Debts Have This Waiting Period?
No. There are some student-related debts that do not apply to the seven-year waiting period and can be acted upon much faster.
private loans for professional programs
Types of student loan debt that do not apply under this rule include any private loans taken out, commonly for professional programs.
unsecured debts (including credit card debt)
Any other unsecured debts, including credit card debt, can also be cleared much faster without this waiting period.
Not Sure If This Applies to You? We Can Help You Figure It Out
Contact the team at Spergel today, and let’s figure out your next best move to become debt-free.
debt help options
What Are My Student Debt Relief Options?
Here are some of the primary forms of student loan debt help:
Consumer Proposal
A consumer proposal is a legally binding debt relief solution filed through a Licensed Insolvency Trustee. It allows you to negotiate with your creditors to repay only a portion of what you owe — often reducing your debt by up to 80%. You’ll make fixed monthly payments based on what you can afford, usually over a period of up to five years.
Details
A consumer proposal also offers legal protection through a stay of proceedings, which stops collection calls, wage garnishments, and lawsuits. You get to keep your assets (like your home and car), and there’s no interest added during your repayment period. It’s a flexible, affordable, and structured way to regain control without declaring bankruptcy.
Debt Consolidation
Debt consolidation involves combining multiple debts — such as credit cards, lines of credit, and payday loans — into a single new loan with one monthly payment. This can simplify your finances and may reduce your interest rate, making it easier to stay on top of your payments.
Details
While consolidation can lower your stress and help you budget better, it does require qualifying for a new loan, which usually depends on your credit score and income. Unlike a consumer proposal, consolidation doesn’t reduce the amount you owe — but it can be a helpful solution for managing debt if you’re still able to repay it in full over time.
Personal Bankruptcy
Personal bankruptcy is a legal process designed for individuals who can’t afford to repay their debts. It gives you a fresh start by eliminating most unsecured debts, including credit cards, payday loans, and sometimes even student loans (depending on eligibility).
Details
When you file for bankruptcy, a Licensed Insolvency Trustee will handle your case and help determine what assets — if any — need to be surrendered to repay part of your debt. Many essential assets are protected by provincial exemptions, and you’ll receive legal protection from creditors immediately. Bankruptcy is often seen as a last resort, but for many people, it’s also a path to peace of mind and lasting financial relief.
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Book a free call with Spergel today, and let’s figure out your next best move to become debt-free.
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where to start
What's the First Step for Student Loan Debt Help?
The first step is to reach out to a Licensed Insolvency Trustee.
Only a Licensed Insolvency Trustee in Ontario or across Canada can file a consumer proposal or bankruptcy — the two legal solutions for student loan debt relief in Canada. At Spergel, you’ll work with your very own trustee from day one. No hand-offs. No confusion. We will work with you to discuss your financial circumstances and advise you on the best form of student loan debt relief for you.
Everyone’s situation is different. Let’s talk about yours.
Book a free call with Spergel today, and we will make a plan with you on how to help.
General faq
Still Unsure? Let’s Talk Through Your Questions
Check out the answers to some of the most common questions around student debt.
Can I get student debt relief if I’m still in school or recently graduated?
If you’re currently a student or have recently graduated, student loans are typically not eligible for discharge through bankruptcy or a consumer proposal due to the Seven-Year Rule. However, you may still have options to manage your debt, like pausing payments, reducing interest, or consolidating. A Licensed Insolvency Trustee can review your specific situation and help you explore realistic next steps.
What if my student loans are private, not government-issued?
Private student loans — such as those from banks, credit cards, or lines of credit — can be included in both consumer proposals and bankruptcy with no waiting period. These types of loans are treated like regular unsecured debt, so relief may be possible right away. A Licensed Insolvency Trustee will help determine what qualifies and how to move forward with the best solution.
Will my credit be ruined if I file for student debt relief?
While any formal debt solution (like a consumer proposal or bankruptcy) will impact your credit temporarily, it’s often a better long-term solution than continuing to struggle with unaffordable debt. Many people begin rebuilding their credit soon after their proposal or bankruptcy ends — and find they’re in a much stronger financial position than before. We’ll help you understand the full picture so you can make an informed choice.
What’s the difference between student loan consolidation and a consumer proposal?
Student loan consolidation combines your debts into one new loan, but you’ll still owe the full amount, and may lose any student loan tax benefits. A consumer proposal, on the other hand, is a legal agreement that can reduce your total debt by up to 80%, including some student loans if you qualify. It’s worth exploring both with a Licensed Insolvency Trustee to see which path makes the most sense for you.
Is there any help available if I can’t make my student loan payments?
Yes, if you’re struggling, you’re not alone, and there are several options. You may be able to apply for repayment assistance, pause your payments temporarily, or reduce your monthly amount. A Licensed Insolvency Trustee can help you understand all your options — including legal solutions like a consumer proposal — based on your full financial picture.
HELP FOR CURRENT STUDENTS
Can Spergel Still Help If I Was a Student in the Last Seven Years?
Even if your student loans aren’t eligible for discharge yet, we can still help you cut down on the financial pressure:
Starting A Conversation With Your Loan Provider
Contacting your student loan provider to try and negotiate your repayments.
Temporary Payment Reduction
Requesting a temporary payment reduction, for example, just paying off interest.
More Time to Pay Off
Requesting a longer timeframe to pay back your student debt.
More Affordable Interest Rates
Applying for a hardship reduction, whereby the government lowers your interest rates.
No Matter What, A Call Is Always The Right First Step
Book a free call with Spergel today, and we will make a plan with you on how to get you debt help.
Real Canadians. Real Success — Like Sarah
“In just three months, tracking my spending became a game-changer. I thought I was budgeting well, but the reality was eye-opening. Spergel helped me realize that the ‘small’ purchases were adding up. Thanks to their guidance, I saved $600 in just two months!”
– Sarah, Ontario
Sarah's Story is just one of many
Sarah’s journey from budgeting confidence to financial awareness showcases the power of detailed spending tracking. Discover more Success Stories of Canadians we’ve helped, or reach out to us so we can help you.
What Real People Are Saying
Read honest feedback from Canadians we’ve helped find relief, peace of mind, and a fresh financial start.
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